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Crystal Ignatowski By Crystal Ignatowski • May 23, 2017

How To Get A North Dakota Car Dealer License

north dakota car dealer license


The North Dakota Department of Transportation issues all new dealer licenses for the state. If you wish to become a North Dakota car dealer, follow these steps.

Not sure if you need a dealer license? Check out this post on selling cars without a license.

 

 

How to get a North Dakota Dealer License

 

Step #1: Establish a place of business


Your place of business must meet the following requirements:

  • Display lot of at least 2,500 sq. ft.
  • Building of at least 250 sq. ft.
  • Business sign measuring a minimum of 32 sq. ft. in size, clearly visible from the road
  • Installation of business telephone
  • Zoning approval form

Your location does not mean a residence, tent, temporary stand, or other temporary quarters.

Your location will need to be inspected.

For questions about your location, contact the North Dakota Department of Transportation Dealer Services at 701-328-2725

 

Step #2: Complete the North Dakota Application for Dealer License

View the North Dakota Application for Dealer’s License.

 

Step #3: Purchase North Dakota Motor Vehicle Dealer Bond

Every dealer must have a dealer bond. 

The bond amount is set at $25,000.

The price you pay for your bond is a percentage of the bond amount. Those with good credit will pay 1-4% of the bond amount ($250 - $1000) and those with bad credit will pay 5-15% ($1250 - $3750).

You only need to pay for your bond one-time, not monthly. 

See what you'd pay for a bond. Get a free quote.

 

Get a North Dakota Bond Quote

 

 

Step #4: Other requirements

For a list of all requirements, view the New and Used Motor Vehicle Dealer Licensing and Bonding page.

Requirements may include:

  • Franchise agreement
  • Garage liability insurance

 

Step #5: Pay fees

  • $100 license fee
  • $100 initial inspection fee
  • $20 for each additional dealer plate (license comes with 1 plate)

Checks or money orders can be made to the North Dakota Department of Transportation.

 

Step #6: Submit

Send your application to the North Dakota Department of Transportation at the address below:

Department of Transportation
608 East Boulevard Avenue
Bismark, ND 58505-0700

 

North Dakota Motor Vehicle Dealer Rules

Yes, there are rules that all North Dakota motor vehicle dealers must follow. 

  • If you establish a second lot location, it must be within 5 miles of your established place of business
  • No motor vehicles can be sold on Sunday
  • License renewals must be made before December 31st of each year to maintain a valid motor vehicle dealer license
  • You must sell more than 4 vehicles a year to maintain your license

 

Questions?

For more information, or for answers to your North Dakota Motor Vehicle Dealer licensing questions, contact the North Dakota Department of Transportation Dealer Services at 701-328-2725


You can also reference North Dakota’s Motor Vehicle Dealer Licensing and Bonding Chapter here.

 

 

View our FREE EBOOK: "The Ultimate Guide To Car Dealer Licensing"

 

Related links:

North Dakota Dealer License Forms

North Dakota Dealer Requirements